Momentum Monday…The FANG/FAANG Blues and Mood Matters

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Here is today’s episode where we cover Apple, the defensive stocks and some new leadership stocks.

You do not have to watch every episode of Momentum Monday, but Ivanhoff and I do them every Monday as our way of doing homework on the markets momentum and to chat about trends that are showing up in our lists.

One thing that has changed over the last six weeks is that the technology momentum leaders started to lose their breakouts and the US started to catch up with the rest of the world’s market weakness.

Ivanhoff sums it up well with this statement

Apple beat earnings estimates again, but it sold off after it gave a soft sales guidance and said it will stop to provide unit sales updates. The market reaction is not unique to AAPL. The market has been unforgiving this earnings season. It has punished the slightest weakness in all earnings reports. This is why we say that the market mood matters. Lower prices are usually the end result of high expectations and sour mood.

If you like boring stocks …all is not lost. Starbucks, McDonalds and J&J continue to lead. I call these 8 to 80 stocks and prefer to buy them when they are down 20-30 percent because they are not growth stocks anymore. Large money likes to hide out in them when the markets are weak and they have to own stocks. Ivanhoff and I believe they will not be immune if the market takes another leg down, but right now the price action is sweet.

Also published on Medium.